SIAS Global In Action

Providing a surety speed to market

George W. Thompson   •   January 28, 2025

Issue No. 3

Providing a surety speed to market

Underwriting Scenario

Our client, a domestic surety company, ranked among the top 25 U.S. surety companies, received a submission from a national surety broker seeking approval for a Nevada reclamation bond for a publicly traded gold mining company. This represented a new business opportunity for the surety. The mining company had additional expansion plans for new mines, as well as increases in current exposures.

Our Recommendations

A review of the mining company financial statements and website disclosures provided a clear snapshot of a well-managed company with a strong balance sheet, zero debt, and a history of consistent profitability with payment of stock dividends to shareholders. The existing mining operations and future reserve base indicated high-quality reserves, low-cash cost per ounce projections and no need to leverage the balance sheet with debt.
Utilizing data currently housed in the Kairos Information Hub, the SIAS team was able to confirm regulatory reclamation compliance with no current or historical violations. Satellite imagery confirmed the satisfactory status of reclamation.

Outcome

The surety was able to quickly respond to their broker with favorable terms and conditions, not only on the pending surety request, but also on bonds to meet the operator’s expanding surety requirements.

SIAS Global . . . your “eyes” in the sky and “boots” on the ground, experts in remote analytics.

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